According to the UN, the volume of trade passing through the Suez Canal, which has been hit by attacks by Yemen’s Houthi rebels in the Red Sea, has fallen by 42% in the past two months.
“We are very concerned about attacks on shipping in the Red Sea (…), which exacerbate trade disruptions associated with geopolitics and climate change”.On Thursday, January 25, during a press conference, Jan Hoffmann, the official of the United Nations Organization responsible for Trade and Development (UNCTAD) declared.
According to UNCTAD, trade volume through the Suez Canal has fallen by 42% in the past two years due to Houthi attacks, which have forced ship owners to suspend transit through the Red Sea and bypass Africa. And the weekly number of container ship transits fell by 67% year-on-year. “The largest container ships are mainly those that no longer use the Suez Canal, the decline in container volumes is even more significant”Mr. Hoffman noted.
Tanker transportation is down 18%, bulk cargo ships (grain, coal, etc.) are 6%, and gas transportation is suspended.
Other sea lanes “under stress”
Since November 2023, Yemen’s Houthi rebels have said they have targeted ships in the Red Sea and Gulf of Aden that they believe are linked to Israel, “unity” Along with Palestinians in Gaza, who are suffering from a massive military operation launched by Israel following an unprecedented October 7 attack on its soil by the Islamist movement Hamas.
More worrisome are trade barriers in the Red Sea “More than 80%” Global trade in goods takes place by sea “Other important roads are already under stress”UNCTAD expert underlined.
Thus, transit through the Black Sea was largely disrupted after Russia’s invasion of Ukraine, causing global food prices to rise in the months that followed. And because of the drought, the water level in the Panama Canal has dropped significantly, reducing traffic. Thus, in December 2023, the number of crossings through the canal had decreased by 36% compared to a year earlier and by 62% compared to two years earlier, according to UNCTAD.
“Prolonged disruptions to major trade routes could affect global supply chains, causing delays in the delivery of goods, increased costs and inflationary risks.”The UN agency notes, in particular, concerns about world food prices.
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